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Many people think that debt is caused by people that just can’t control their spending. This does happen but there are many other reasons why people suddenly find themselves in debt.

People in debt often think that they can’t cope because there is no hope of getting out of their situation. If you find yourself in this situation then there are actually a lot of thing you can do. The main thing is not to panic and take time to work it out making positive steps to helping yourself get out of debt.

The first thing to do is to be honest with your situation and find out exactly how much your debt you are in. You need to sit down and work out how much money you owe and how much you have to pay on a monthly basis. This includes all the things you buy. By looking at a bank statement for a typical month you will see the things you spend your money on. You then need to work out how much money you earn on a monthly basis. This will tell you if you are spending more than you earn. If you are breaking even or earning more then maybe you need to think about cutting back and putting some money aside to pay you debt off sooner. If you are earning less, and many people are, then you need to look at the things you pay for month by month and see where you can cut back. You may have to be a bit creative in finding ways of spending less every month.

Debt for some people can arrive suddenly if you have recently separated from you partner, or if you lose your job. If this is the case then the credit companies advise people to tell their lenders by sending a letter explaining their situation. This quite often helps because mortgage companies have great difficulty in taking money from people that simply don’t have much. It is usually far better for them to work with you on helping you repay your debt so that they get their money, even if it takes them a bit longer. The three credit companies Experion, Exifax and Transunion give good advice about coping with debt.

So if you find yourself in debt, don’t panic. Be honest with yourself about your situation and be constructive by thinking of the positive things you can do to help yourself get back on the right track.

If you need additional help or have questions about repairing your credit. Click Here to join The Credit Repair Association of America or call 800-603-5032 between 9am-5pm MST Monday through Friday.